Marketing Research and Tesco's Product Strategy

This assignment examines the importance of marketing research in understanding customer needs and developing effective product strategies. It focuses on Tesco's approach to marketing by analyzing its product offerings, pricing strategy, promotional activities, and distribution channels. The assignment also compares Tesco's marketing mix with that of Harrods, highlighting key differences and the impact of demographic factors on their strategies.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Description about how marketing technique are used to market product and in two
organisations...............................................................................................................................1
P2 Describe the limitations and constraints of marketing..........................................................2
TASK 3............................................................................................................................................3
P3 Describe how a selected organisation uses marketing research to contribute to the
development of its marketing plans............................................................................................3
P4 - Use marketing research for marketing planning..................................................................4
P5- Explain how and why groups of customers are targeted for selected products....................4
P6- Develop a coherent marketing mix for a new product or service.........................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is a process of selling goods and services to buyers and its values is
determined in terms of money. The mentioned concept includes promotion, distribution,
advertising, and delivering product to people. The main objective of marketing is to earn
maximum profit along with customer satisfaction (Wright, 2016). The present report is going to
discuss various marketing techniques and its significance in business activities. In addition to
this, report is also explaining the uses of marketing research to contribute to the development of
organisational planning. The corporation undertaken for making this report is Tesco which is a
public limited company and deal in retail industry. The another venture is Harrods which is
private limited company which providing quality and luxury goods to its customers.
P1 Description about how marketing technique are used to market product and in two
organisations
Marketing strategy is used by different companies to collaborate with their consumers. It
is also employed to aware the customers about the features, specifications and benefits of
company’s products. It is basically focused on encouraging target population to buy those
specific products and services.Many company is using Ansoff matrix for attaining business goal
and objectives. This matrix is a tool for strategic planning which usually provide a direction to
managers, executives and marketers (Salavati and Karami, 2015). Component of this matrix are
market penetration, product development, market development and diversification. Ansoff
matrix is defining growth, survival, branding and relationship marketing in the context of Tesco
and Harrods.
Growth Strategy:
Tesco is popular company in UK market and having 500000 employees who are
providing effective services to its customers. Cited venture is successfully using Growth strategy
for development of its business in the market. Mainly Tesco is focusing on market development
strategy. As per this strategy, firm seeks to achieve growth by existing products in the new
market. In this strategy company's main purpose to expand its business and goodwill in new
market. Organisation having large range of existing products which satisfying the needs of
customers. Promotion of these product in new market have intension to supply effective
impression in the mind of new customers. On other hand Harrods is a private sector retail
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industry in UK market which giving various quality and luxury products to its customers and
satisfying their expectation effectively. Growth strategy for cited firm is playing significant role
and it can particularly emphasis on market penetration strategy for get large number of customer
in existing market. With assist of this aspect, firm can expand its business in existing market
segment. The main objective of mention aspect is to expand its market share and Harrods has
successfully attempt this strategy in UK market.
Survival strategy:
In the context of Tesco, its main aim is to satisfy customer needs and wants regarding its
product and services. Survival strategy for cited venture is customisation which company have
various range of products for its customers. With the assist of identifying customers needs,
Tesco is emphasis in fulfilling their requirement (Ferrell and et.al., 2014). This strategy aids in
developing competitive advantage of firm over major competitors. On the other hand, Harrods
survival strategy is to provide quality and luxury products to its customers. It aids in maintaining
its business operation as well as brand image in the UK market.
Branding:
Tesco has maintained its brand image in UK market. and in different countries as well. It have
unique products and services which differentiate it from its competitor in the market. This is only
the reason of their immense goodwill whole over the world. On the other side, Harrods have also
its different brand because of its luxury products. The cited venture brand is admired, valued and
respected throughout the world. It has maintained its integrity by never lowering its standards. It
focuses on new premium in which value is more important than price. It providing rare
commodity in leisure time and uniqueness experience.
Relationship marketing:
Tesco has successfully attempt the customer values and their demand in market.
Therefore, it takes feedback option to its customer there fore it can access actual customer
requirement for that particular product. The cited venture has maintain effective relation with its
customer. On the other hand, Harrods uses various social media measures to get connected with
customers and also interact with them constantly.
P2 Describe the limitations and constraints of marketing
There are various limitation of constraints marketing which needed to consider by the Tesco-
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 Sale of Goods Act 1979 -As per this act, seller cannot sell that products which does not
match to customer purpose or requirement. This states that the products which are sold by
the firm are generally fit for the purpose (Dhar and Varshney 2011) it is up to date with
all changes known to be in force on or before 12 April 2017. There are changes that may
be brought into force at a future date. Changes that have been made appear in the content
and are referenced with annotations. This act have to followed by the company at the
time of marketing.
 The Consumer Protection from Unfair Trading Regulations 2008 is a statutory instrument in
the United Kingdom made under the European Communities Act 1972. It came into force on 26 May
2008. This act is also implement by the Tesco at the time of operating its marketing activities. As per
this act, customer have right to protection of their health and money. This concept usually protect
from unfair trading and assures that customers do not lie from marketers (Cochoy, 2014).
TASK 3
P3 Describe how a selected organisation uses marketing research to contribute to the
development of its marketing plans
Marketing research assist the marketer in identifying actual customer demand and needs for that
particular product. Furthermore, it can define actual venture condition in the market. In order to
conduct effective market research, firm needs to develop proper research plan which assist in
attaining overall organisational purpose. Cited venture can consider below given methods for
develop the marketing plan for the future. These are as follows- Qualitative: In this context, Tesco needs to take some effective measures which aids in
improving its functioning of business. In this concept, cited venture will undertake
qualitative measures such as provide feedback option to its customers for identifying their
needs regarding particular product and services (Homburg, Jozić and Kuehnl, 2015). Quantitative: In this context cited venture will compare the present and previous sales
and profit of the business. Furthermore, company will evaluate and analysis it’s overall
financial as well as operational performance. This will assist firm in developing the
marketing plans in clear and appropriate manner. Primary (internal research): In this, cited venture will see overall performance of its
overall operation throughout the globe. Consistently in working will lead into
development of company which will assist them in developing proper plan.
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 Primary (external research): In the context of external research, company published
report in every year and the manager of cited venture can see their performance that
where company are standing when compared to its rival competitors. This will aid to
company in making effective plans for its business unit. Secondary (internal): In this concept manager of firm can use various internal source
such as library, academic reports, magazines, newspapers etc for obtain data. This will
enhancing organisational functioning and assist manager to develop marketing plan
accordingly.
 Secondary (external research): External data can be obtained through industrial report
which are published by government. This will assist the firm in attaining its marketing
plans in appropriate manner.
P4 - Use marketing research for marketing planning
Information is stimuli that has meaning in some context for its receiver. When
information is entered into and stored in a computer, it is generally referred to as DATA. After
processing (such as formatting and printing), output data can again be perceived as information.
It is ascertained that marketing research can assist company in improving overall functioning of
business. With the assist of various measures company can collect data through various sources.
With assist of marketing research cited venture collects various data from different sources so
that they can form best of the market plans which gives them benefits in the long run of their
business operation. Company conduct research and development programmes for identifying
data and plans to make necessary changes so that it can excel their operations in effective manner
(Jaramillo and Spector, 2015).Tesco has successfully conduct market research in its business
operation therefore, it have a great progress. Furthermore, it have strong attempt on the demand
of consumers with assist of effective research and development programs. It can recommended
to company that it should use past trend for analysis its performance and firm should use internal
resources for analysis its competency.
P5- Explain how and why groups of customers are targeted for selected products
Tesco organisation, it have three different products which are considered as clothes, health care
and home appliances items. On the other side, Harrods which are considered on food product and
entertainment zone. The segmentation of the product will be done on following basis:
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Psychographic factor- Psychological factors refer to thoughts, feelings and other cognitive
characteristics that affect the attitude, behaviour and functions of the human mind. These factors
can influence how a person thinks and later affect his decisions and relations in his daily
life.Tesco as well as Harrods have to identify the attitude and behaviour of customer towards the
product and services which company rendering to them.
Demographic factor- Demographic factors are personal characteristics are used to collect and
evaluate data on people in a given population. Typical factors include age, gender, marital status,
race, education, income and occupation. (Cochoy 2014) Governments use analysis of the
demographics make-up in a population to plan strategies and ongoing public service programs.
Tesco will identify the spending power of people as the products needs to be within their budget
constraints.
P6- Develop a coherent marketing mix for a new product or service.
Marketing mix refers to the product, price, promotion and place strategy of the firms. Product
mix of the Tesco are as follows-
Product- Tesco is selling product like clothes, health care and home appliances items through its
retail stores. It can be said that firm planning is to serve varied needs of the people (Pels, 2015).
It is basically focusing on meeting needs of the people that are other than basic requirements.
Price -Tesco pricing strategy is very fierce. It is focusing on competition and in this regard it
plans to make available products at relatively low price to the customers (Pels, 2015). It can be
said that firm is planning to make available products at a very cheaper price to the target
customers. So, that loyal customer base can be developed in the business.
Promotion- Tesco is following aggressive marketing strategy and under this it is running varied
campaigns on social media. Main target of the firm are youngsters because they greatly influence
their family members decisions (Bahadir, Bharadwaj and Srivastava, 2015.).
Place- Tesco will sale products through its own retail stores.
Marketing mix of Harrods
Product-Food products- There are number of food products that are served by the firm to its
customers. It makes available fresh vegetables and other edible items to the target customers.
Entertainment- Firm does not confine itself to single product and it is also focusing on
entertainment sector (Salavati and Karami, 2015). In this regard it will make available varied
services to the people.
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Price- In case of food products firm is planning to make available products at cheaper price to
elevate market share in the industry. Price of entertainment activities will be competitive so that
reasonable amount of margin can be earned in the business.
Promotion-Traditional and modern channel of communication will be used to advertise firm
varied products (Pels, 2015).
Place -Products will be sold from the firm premises.
CONCLUSION
From this project report it has been concluded that Marketing research assist the marketer
in identifying actual customer demand and needs for that particular product. Furthermore, it can
define actual venture condition in the market. Tesco has successfully attempt the customer values
and their demand in market. Therefore, it takes feedback option to its customer there fore it can
access actual customer requirement for that particular product. It has been also concluded that
Tesco is following aggressive marketing strategy and under this it is running varied campaigns
on social media. Main target of the firm are youngsters because they greatly influence their
family members decisions.
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REFERENCES
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